On FDIC limits and negative yields

With 13-week T-bills today yielding 0.04% and Bernanke stating that the intention is to achieve the 2% nominal inflation target ... who in their right mind would be buying these bills?

Perhaps only people with a shitload of $ assets (eg: long bonds) that they want to get out of and into spendable cash ASAP. With a meagre $250K FDIC limit, they can't just sell the long bonds and put it on deposit at a bank. So 100% government-backed short term T-bills it is then.

And the government, therefore, will have to print and print and print to payout 100% of the cash that is due as these T-bills mature. After all, the US government is the ultimate risk-free borrower - they have a printing press (and a president!) that says they will never, ever, default on a loan.

If the buyers don't choose to roll them over for another 13 weeks that is. With T-bill yields below the stated nominal target rate of inflation, how long will they roll? Or will they take all this money promised to them in the form of credits, converting it to its final form?





<sup>What is that incessant humming? Coming from your manga maw?
Oh, you breathe twin towers, oh - you gave your powers up.

....and I can't teach you how to stop it, and you can't make me understand
Break, the withered habit, mmm - I need your rabid smile

Your home, (with the family wife and child and wife and)
Your head, (days in the cemetery come the calm the calm the)
Take form, (Time as your figure becomes the stone the stone your)

First body, Last body

I wish the summer was over us in bursts
We're in the middle of nothing we can hold
and the sewers erupting life in gold
I'm gonna happen and happen until my whole give up the ghost
I'm gonna renew my sinew until my cells divide no more

So lean me up and take a picture, I can't move my legs and arms
It's too much information, too - much to be thinking of

and each of us have separate houses, and each of us have separate souls
and some of us do nothing, some - some of us do nothing more

Your home, (sleep as your figure becomes the stone, the stone, the)
Your head, (time with the family, sleep the wheel, the tomb, the)
Find More lyrics at www.sweetslyrics.com
Take form, (dance with the atrophy cold and warm and warm your)

First body, Last body

I wish the cesspit would open like a bible
I wish the rotten would blossom with the tidal
and, I've never been able to divide us
I'm gonna wrestle and wrangle until my legs become unreal
I'm gonna stumble and scramble my way to lactic ecstasy

Yet while I can slumber, rest, move so slowly
It's creeping across his chest, like some cold weed
He's not as afraid as me, like some dancer.

I wish the cesspit would open like a bible
I wish the rotten would blossom with the tidal
and, I've never been able to divide us
I'm gonna wrestle and wrangle until my legs become unreal
I'm gonna stumble and scramble my way to lactic ecstasy


I wish the summer was over us in bursts
We're in the middle of nothing we can hold
and the sewers erupting life in gold
I'm gonna happen and happen until my whole give up the ghost
I'm gonna travel and travel until my cells divide no more</sup>